JORGE CARRASCO

Looking back on my 11 years at Seattle City Light, I'm most proud of the team that came
together and what they were able to accomplish. The utility was facing some serious
financial, cultural and service challenges as the new century dawned. Thanks to our smart,
hard-working team, and with the support of the Mayor and City Council, we addressed the
hard issues head on. City Light was charted on a new course. Debt was paid down, costs
were controlled, reserves were built up, and risk management was enhanced. Most
importantly, City Light was positioned to provide the best customer service experience of
any utility. This online annual report highlights the powerful progress in 2014.

Jorge Carrasco
Seattle City Light CEO, 2004-2015

Purpose

SEATTLE CITY LIGHT

Seattle City Light serves more than
415,000 customers in the City of
Seattle and eight adjacent
jurisdictions. The publicly owned
utility relies on a mix of resources to
fulfill its customers’ energy needs.

The current resource portfolio
includes:

City Light-owned generation
resources;

investments in conservation;

and long-term contract resources
supplemented with
power-exchange
agreements, near-term purchases
and sales made in the wholesale
power market.

STEWARDS OF A CRITICAL PUBLIC INVESTMENT

Created by the citizens of Seattle in 1902, today Seattle City
Light serves approximately 415,000 customers in the City of
Seattle and eight adjacent jurisdictions. Seattle City Light is
the 10th largest public power system in the United States
based on retail energy sales.

Nearly half of customers’ electric needs are met from
hydropower dams owned and operated by City Light; most
of the remaining power needs are met by hydropower
purchased from the Bonneville Power Administration and
investments in renewable and conservation resources.

THE NATION’S GREENEST

Clean hydroelectricity supplies 90 percent of Seattle’s
power. Our decision in 1905 to invest in dams and
hydroelectric plants means that today we provide the
cleanest electricity of any city in the country.

In 2005, City Light became the first utility in the country to
achieve a net-zero carbon footprint. Today we’re a model
for clean electricity and energy conservation.

The utility’s environmental stewardship and conservation
programs have resulted in high returns of wild Chinook,
steelhead and chum salmon on the Skagit River where
three of City Light’s dams are located.

Seattle City Light provides some of the nation’s lowest utility
rates to Seattle, saving people another kind of “green.”

KEEPING RATES LOW

Seattle City Light rates versus other large U.S. cities in cents per kilowatt-hour (2014)

City

Rate

Seattle

7.61¢

Charlotte

8.55¢

Indianapolis

8.71¢

Dallas

8.99¢

Memphis

9.30¢

Portland

9.56¢

Austin

9.66¢

Denver

9.89¢

Nashville

10.14¢

Jacksonville

10.48¢

Chicago

10.55¢

Detroit

11.2¢

Phoenix

11.6¢

Washington DC

12.55¢

Philadelphia

13.05¢

Columbus

13.18¢

San Francisco

13.79¢

Los Angeles

14.79¢

Boston

15.36¢

New York City

23.56¢

Sources: Edison Electric Institute’s “Typical Bills and Average Rates Report Winter 2015”* or directly
from each utility. Data is based on typical bills and average rates.

THE BEST IN CUSTOMER SERVICE

City Light customers depend on the utility to provide reliable service. This means
preparing for a wide variety of circumstances: windstorms and heat waves, building
booms and busts, new technologies and aging equipment. No matter the circumstance, taking care of our customers is a strategic priority.

Seattle City Light received the highest numerical score among midsize utilities in the West in the proprietary J.D.
Power 2015 Electric Utility Business Customer Satisfaction StudySM. Study based on 22,857 total online interviews
ranking the 12 largest providers in the West. Proprietary study results are based on experiences and perceptions of
businesses surveyed April-June and July-November 2014. Your experiences may vary. Visit jdpower.com.

PEOPLE-POWERED

CITY LIGHT EMPLOYEES

City Light is powered by approximately 1,800 employees.
You’re probably familiar with the men and women you see
around town in yellow trucks, but did you know we also
have employees located as far away as Boundary Hydroelectric
Project in the far northeastern corner of the state,
a stone’s throw from the Canadian border? It takes a
well-trained, dynamic workforce to power an electric
utility. From biologists to economists, our people work
around the clock to keep the power on.

Performance

Scroll over the map to learn
about some of Seattle City
Light’s key accomplishments
in 2014:

SEATTLE:

Invested in People

Engaged Customers in New Ways

Reduced Consumer Fraud

Community Solar Project

Shoreline LED Conversion

NW Solarfest

Rebuilding Together Seattle

South Service Center Family Day

Keeping Ospreys Safe

Earth Day Duwamish Cleanup

Decant Facility Opens

H-Frame Project

Seawall Preparation

Charity Urban Farm

Denny Substation

Shoreline LED Completed

Silicon Injection Project

West Seattle 4K Line Upgrade

Warm Hearts, Warm Homes

BEYOND SEATTLE:

Oso, Washington

Skagit Tours

Boundary Dam

Skagit Salmonid Habitat

SKAGIT TOURS FILLED TO CAPACITY

City Light acquired 230 acres for salmon conservation along the Skagit River, allowing the utility
to protect high quality spawning and juvenile rearing habitat. The utility carefully manages flows
from its Skagit River dams to ensure healthy salmon populations.

RESULTS

In 2014, Seattle City Light
delivered on its commitment
to producing and delivering
environmentally responsible,
safe, low-cost and reliable
power to customers.

Following the economic downturn in 2008, City Light’s
job vacancy rate climbed to 10.9 percent. However, by
2014 the utility successfully reduced its vacancy rate to
5 percent and even pared down the amount of time needed
to fill open positions.

Engaged broader cross section of population

From interviews on Univisión Seattle and viral videos of
Washington’s only native caribou to hosting City Light’s first
Social Justice Equity Fair, the utility connected with customers
and the public in new and diverse ways.

Enhanced sustainability and exceeded conservation goals

City Light continued its legacy as the nation’s greenest utility
and met its 2014 conservation goal. Through zero-carbon
footprint energy, affordable solar power, and electricity
generated mostly from hydropower, the utility conserved the
annual energy use of 12,731 homes.

AWARDS AND RECOGNITION

J.D. Power and Associates

City Light’s customers rated the utility as one of the best
midsize utilities in the West, according to J.D. Power and
Associates. The utility’s overall customer satisfaction
increased over 2013 results, putting it in the nation’s top
20 utilities.

White House names Seattle “Climate Action Champion”

The White House recognized Seattle as a Climate Action
Champion as a result of the utility’s decade-long track record
as a 100 percent carbon-neutral electric utility.

Contributes to Most Sustainable City rating

Seattle achieved a 5-STAR Community Rating with the help
of City Light’s commitment to 100 percent carbon neutrality.
The city achieved the highest score to date and is only
second in the nation to receive the 5-STAR rating.

Tree Line USA utility

City Light’s commitment to protecting urban forests and
providing customers with clean, reliable, affordable electricity
earned recognition as a Tree Line USA utility from the Arbor
Day Foundation.

National Employer of the Year from Association of
People Supporting Employment First

City Light’s Supported Employment program, which hires
and assists employees with development disabilities, won
the 2014 National Employer of the Year award by the Association
of People Supporting Employment First. The program
received multiple awards in 2014 including “Employer of the
Year” from Governor Inslee’s Committee on Disability and
Employment Issues, and “Outstanding Employer of the
Year” from the Community Employment Alliance.

We hope you enjoyed this
annual report highlighting
our efforts to deliver
the best customer service
in the nation.